BEIJING, May 16, 2012 /PRNewswire-Asia-FirstCall/ -- Dehaier Medical Systems Ltd. (NASDAQ: DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products, today announced that the Company has established a wholly-owned U.S. subsidiary, BreathCare, LLC ("BreathCare"), which is based in Illinois. BreathCare will be functioning as an operation center for Dehaier's International focused business, which includes, but is not limited to, product registration, product marketing, and evaluating potential merger and acquisition targets.

The Company's goal is to expand into the United States by establishing a distribution network through distribution agreements and the establishment of a direct sales force. BreathCare was formed as a result of the Company's growing business prospects in the U.S., Canada, Central and South America, along with Dehaier's desire to provide enhanced service and support levels to its expanding customer base in these countries. Currently, BreathCare LLC is preparing to seek approval from the Food and Drug Administration ("FDA") for its homecare products, including CPAP, oxygen concentrator, sleep diagnostic devices and oxygen inhalator.

Mr. Ping Chen, Chairman and Chief Executive Officer of Dehaier Medical stated, "The establishment of an overseas office is a major milestone in Dehaier's growth. We expect to expand our product base to serve these international markets, which we believe is an enormous market for our Company's unique respiratory and homecare medical products. Early this year, we received Conformite Europeenne (CE) certification for our sleep diagnostic devices and air compressors. Opening a US based operation is yet another important milestone in our goal to make Dehaier's products available worldwide and the successful continuation of our expansion strategy."

About Dehaier Medical Systems Ltd.

Dehaier is an emerging leader in the development, assembly, marketing and sale of medical products, including respiratory and oxygen homecare medical products. The company develops and assembles its own branded medical devices and homecare medical products from third-party components. The company also distributes products designed and manufactured by other companies, including medical devices from IMD (Italy), Welch Allyn (USA), HEYER (Germany), Timesco (UK), eVent Medical (US) and JMS (Japan). Dehaier's technology is based on six patents and five software copyrights; additionally Dehaier has two pending software copyrights and proprietary technology. More information may be found at http://www.dehaier.com.cn.

Forward-looking Statements

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, government approvals or performance, and underlying assumptions and other statements that are other than statements of historical facts, including in particular statements about Dehaier's membership in the Zhongguancun Association and the meaning of and retention of any ratings granted to Dehaier (including any factors affecting such ratings). These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, future developments in payment for and demand for medical equipment and services, implementation of and performance under the joint venture agreement by all parties, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.